At the Beginning of the Year, Keats Company Had Total

question 178

Essay

At the beginning of the year, Keats Company had total assets of $550,000 and total liabilities of $200,000. Answer the following questions viewing each situation as being independent of the others.
(1) If total assets increased $200,000 during the year, and total liabilities decreased $75,000, what is the amount of owner's equity at the end of the year?
(2) During the year, total liabilities increased $230,000 and owner's equity decreased $90,000. What is the amount of total assets at the end of the year?
(3) If total assets decreased $40,000 and owner's equity increased $130,000 during the year, what is the amount of total liabilities at the end of the year?

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Definitions:

Impeller

A rotating component of a pump, blower, or compressor designed to move fluid by converting rotational energy into fluid flow.

Jet Pumps

Mechanical devices that use a high velocity jet of fluid to entrain a lower pressure fluid and raise its pressure.

Uni-directional

Capable of moving or operating in only one direction, often used in reference to devices or mechanical components.

Maximum Twisting Force

The highest torque a rotating shaft or component can withstand without yielding or failing.